New investor signals fresh momentum
The Great Sea Interconnector has entered a new phase following the acquisition of a majority stake by French investment company Meridiam, raising expectations that work on the Greece-Cyprus electricity interconnection project will resume after a prolonged period of uncertainty.
The agreement, announced in Athens in the presence of Greek Prime Minister Kyriakos Mitsotakis, provides for Meridiam to acquire a 66% stake in the project’s special purpose vehicle. Greece’s Independent Power Transmission Operator (IPTO/ADMIE) will retain the remaining 34% while continuing to oversee the project’s technical coordination.
Offshore surveys top the agenda
The immediate priority for the new ownership structure is to complete offshore seabed surveys along the planned cable route. These surveys were suspended in recent months amid tensions in the Eastern Mediterranean.
According to information from Greece, the first NAVTEX notices authorising the resumption of the surveys could be issued as early as September, marking the project’s return to field operations after nearly two years of inactivity.
Under the agreement, Meridiam will finance the remaining seabed surveys, regarded as an essential prerequisite before the project can move into its next implementation phase.
Stronger French involvement
The participation of a major French investment group is expected to enhance the project’s geopolitical significance, as the Great Sea Interconnector is classified as a Project of Common European Interest.
Reports from Greece indicate that the agreement reflects close cooperation between Athens and Paris, with the issue having been discussed at the highest political level between Greek Prime Minister Kyriakos Mitsotakis and French President Emmanuel Macron.
The increased French involvement is expected to strengthen both the project’s international credibility and its political backing within the European Union.
Turkey remains the key uncertainty
Despite the renewed momentum, the main question remains how Turkey may respond when offshore surveys resume.
Previous attempts to carry out survey work were accompanied by Turkish interventions and operational activity in the Eastern Mediterranean, resulting in repeated delays.
Officials in Athens believe Meridiam’s entry followed extensive political and operational consultations aimed at reducing the risk of further disruptions during the issuance of NAVTEX notices and the execution of survey operations.
Cyprus to assess its next steps
The latest developments also bring renewed focus to the Republic of Cyprus’ commitments regarding its planned equity participation in the project, as outlined in the 2024 intergovernmental agreement between Greece and Cyprus.
Nicosia is expected to assess the new circumstances, with significant weight likely to be placed on both the progress of the offshore surveys and the findings of the European Investment Bank’s study on the project’s financial viability and economic characteristics.
According to available information, discussions between the new GSI corporate structure and the Cypriot government are expected to follow, focusing on Cyprus’ potential shareholding and its financial commitments.
Next phase of implementation
In the coming weeks, the new board of directors of the Great Sea Interconnector’s special purpose company is expected to be appointed.
ADMIE, Meridiam and French cable manufacturer Nexans, which is responsible for constructing the subsea cable, will then coordinate the next stage of technical work.
If offshore surveys proceed without disruption, the project will move into its next implementation phase, paving the way for the main cable-laying operations.
The next two months are widely regarded as critical, as developments on the ground will determine whether the project’s new corporate structure and strengthened geopolitical backing are sufficient to overcome the obstacles that have delayed one of the Eastern Mediterranean’s most significant energy infrastructure projects.
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